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International Business Entry
CHAPTER 12 Hao Zhuo TFSU
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Learning Objectives Incentives of international business
Determinants of entry mode choices Direct exporting and indirect exporting Licensing and franchising
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Incentives of International Business
Source: searched by Google picture.
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Determinants of Entry Mode Choices
Environmental Factors The host country market the conditions of foreign infrastructures, factors of production and the supporting and related industries. The indirect environmental factors of a host nation Internal Factors of an Enterprise The product or service produced The resource factors
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Characteristics of Different Entry Modes
Indirect Export Direct Export Licensing Franchising Contract Manufacturing Foreign Assembly Foreign Production Foreign Involvement < Overseas Capital Investment Degree of Control Risks Market Price Flexibility > Source: Editorial committee on Elaboration of Harvard: The New Economy (2001), International Business, China Business United Press.
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Going Abroad through Exporting
Export through Trading Companies
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Going Abroad through Licensing and Franchising
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